XpresSpa XSPA Stock News

XpresSpa Group Inc (NASDAQ: XSPA) has been a hot topic of discussion after the airport spa company said that it would temporarilly transform its airport real estate into COVID-19 testing centers. Since, there have been plenty of people saying that this isn’t possible, but the overwhelmingly majority seem to be excited about the company’s plans.

Not to mention, a big recent milestone may put a domino effect into place. The company announced that it entered an agreement with JFK International airport that marks a key milestone. Here’s the scoop:

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The Most Important Milestone Yet

About two weeks ago, XpresSpa announced its biggest milestone yet. The comapny said that it entered into an agreement with JFK International airport to start a pilot of its COVID-19 testing centers.

During the pilot, tests will be made available to airport employees, contractors, and others that work to support the airport. Should all go well, there’s a good chance that, not only will the program be expanded at JFK, other airports will join into the program.

Think of the implications of that. At the moment, there are 485 airports across the United States. There are 1.2 million workers that keep these airports alive. Should the model work in one of the most heavilly impacted airports in the United States, there’s no reason to think that the idea wouldn’t spread to other airports.

Of course, the implications here are massive. Should XSPA be successful here and the idea spread throughout airports across the United States, the company will quickly become a cornerstone in the fight against the COVID-19 pandemic, an incredibly valuable concept.

1.2 Million Is Just Scratching The Surface With Regard To Audience

As mentioned above, there are 1.2 million workers that support airports across the United States, and they all may be part of the XSPA audience. However, this is just the tip of the iceberg.

If the company’s pilot is successful, it is possible that the company will ramp up its efforts, providing tests for passengers as well. This would be an important step in the fight against the COVID-19 pandemic as these tests could greatly reduce the spread of the virus across state and national lines. Nearly 1 billion passengers make their way through United States airports on an annual basis. That’s a massive audience my friends.

The Bottom Line

While there will always be naysayers, regardless of how good an idea may be, I believe that XpresSpa is onto something serious here. The company’s recent breakthrough in launching its pilot test in JFK could lead to a domino effect that expands its audience to 1.2 million airport workers across the United States in the beginning and nearly 1 billion travelers as the idea ramps up.

If you can’t see the value in that, well, you need to go to your optometrist. In my view, XSPA is a stock that should be watched closely.

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1 COMMENT

  1. 1. One of the key insiders (Mistral) sold most of its shares back in April at $0.35/share. It’s a signal that the Company did not plan for converting their treatment centers into Covid-19 test centers. It was a last minute decision
    2. Their centers are tiny and can only test up to 500 people/day
    3. Who would get tested just before getting on a plane? This model only works for workers at the airports
    4. The stock price massive increase is clearly due to retail investors who are speculating with little to no knowledge about investing (similar behavior in the cryptocurrency market)
    5. The Company will need more than a couple of Covid-19 centers to survive (low operating leverage and heavy cost structure)

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